The world economy has been projected to shrink by 3.2 per cent wiping out nearly four years of output gains as economic activities around the world comes to grinding halt against the backdrop of the coronavirus (COVID-19) pandemic, a new UN report said.
This means, the world will see some 8.5 trillion US dollar in overall losses, according to a mid-year economic analysis by the UN.
In its World Economic Situation and Prospect (WESP) report update released Wednesday, the UN Department of Economic and Social Affairs (DESA) said as of mid-2020, GDP in developed countries will plunge to -5.0 per cent and the output of developing countries will shrink by 0.7 per cent.
“The global economic outlook has changed drastically since the launch of WESP 2020 in January,” noted Elliott Harris, the UN Chief Economist and Assistant Secretary-General for Economic Development, reports UN news.
Coronavirus has unleashed a health and economic crisis, unprecedented in scope and magnitude, with lockdowns and border closures paralysing economic activity and laying off millions of workers globally.
Harris said with large-scale restrictions of economic activities and heightened uncertainties, the global economy has come to a virtual standstill in the second quarter of 2020.